Multichain attack triggers Twitter phishing scheme for FTM distribution

Spread the love

Hackers continue their relentless attacks, displaying no signs of slowing down. Shortly after the Multichain hack, scammers started spreading a phishing link on Twitter.

The fraudulent distribution of Fantom (FTM) to users — falsely linked to the Multichain attack — is rapidly spreading on Twitter, attracting significant attention. The post has attracted a lot of attention from Twitter users.

In the tweet, the scammers stated:

“Due to the Multichain hack, Fantom Foundation is issuing an emergency FTM distribution to all users. All users who have interacted with the FTM chain are eligible to claim.”

A phishing link was included in the tweet and shared with the affected users, leading them to believe it is associated with Fantom Foundation, the nonprofit organization responsible for the Fantom network.

On July 6, Multichain encountered an alarming situation when significant outflows were detected on its platform. In response, Multichain suspended operations to investigate the issue. By the end of the day, approximately $125 million worth of Multichain assets had been illicitly transferred to various wallets. The most targeted was the Fantom bridge, with approximately $122 million worth of Wrapped Bitcoin (WBTC), USD Coin (USDC), Tether (USDT) and other altcoins stolen from its holdings.

In response, Multichain strongly recommended users halt all activities on the protocol and revoke any contract approvals associated with it. This precautionary measure was advised until investigations were concluded and a comprehensive explanation was provided.

Related: Circle, Tether freezes over $65M in assets transferred from Multichain

During the investigation, Binance CEO Changpeng “CZ” Zhao informed his Twitter followers that the exchange remained unharmed by the attack, reassuring them that all funds were secure. Additionally, he verified that Binance had already executed an asset swap and ceased accepting deposits from Multichain some time ago.

Instances of Twitter hacks like these are increasingly prevalent within the crypto industry. Users must exercise caution and refrain from clicking on unfamiliar links.

Magazine: Should crypto projects ever negotiate with hackers? Probably